TAB launches commercial product that rewards ESG initiatives

  • 14/09/2023
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TAB launches commercial product that rewards ESG initiatives
Specialist lender TAB has released a commercial mortgage that offers a discount to borrowers if they meet specified environmental, social and governance (ESG) criteria.

This is the first commercial product to be launched by the lender and is part of its strategy to grow its loan book to £500m in 2024. 

It offers loans between £250,000 and £2.5m on terms from three to 10 years. It is available up to 65 per cent loan to value (LTV). 

Under the ESG requirements, borrowers will receive a discount of up to half of the exit 2.5 per cent fee if they fulfil certain conditions. 

They will get up to 0.75 per cent off for improving a property’s energy performance certificate (EPC) rating, with a discount of 0.25 per cent for increasing it from D to C or 0.5 per cent for D to B. The maximum discount will be given if the EPC is brought up from a D to A. 

Another 0.25 per cent discount can be obtained by other sustainable measures such as installing EV charging, implementing efficient waste management or using green materials. 

An extra 0.25 per cent discount is available if the property is linked to social outcomes related to UN Sustainable Development Goals, such as being leased to social enterprises, charities or adult learning. 

The TAB team will work closely with the borrower so that outcomes are assessed with the appropriate evidence.


TAB: ‘The next natural step’ 

Duncan Kreeger, CEO and founder of TAB, said: “This commercial mortgage represents the natural next step for our business. We are thrilled to introduce our mortgage product, further building on the trust we have established with our customers and can continue serving property investors beyond their short-term needs. The TAB mortgage offers personalised commercial mortgages at the speed of bridging. 

“It was important to us not to create just another commercial mortgage. Buildings endure long after we do, so it’s essential that our mortgage product not only encourages our customers to make environmental improvements but also prioritises sustainability and wellbeing.” 

He added: “This product rewards those who want to make positive change and provides tangible discounts which we hope will contribute to the futureproofing of buildings, enhancing our communities and environment. At TAB, we are committed to playing our part in a more sustainable future.” 

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